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The first theorem of welfare economics fails since it is based on the unreasonable assumptions such as existence of large number of buyers and sellers having perfect rationality and perfect information.This assumption doesnot exist in the real world and thus the fundamental theorem of welfare economics fails.
The market fails to exist for some goods due to the nature of goods being exchanged like if the good is public good wherein sellers are unable to exclude non buyers from using the product and this leads to underinvestment since developers are not able to extract full benefits of the development .A example of this is new method of harvesting.
Another reason for market failure is a traffic congestion that exist in case of public roads where entire population uses it and act as a complement to the cars because of the low cost and high benefit associated with the use of roads it becomes congested thus decreasing the usefulness to the society .
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Bonus Question. (15 extra points) The first fundamental theorem of welfare economics fails if there are...
3. Give (“a real life”) example of a market where you think the First Fundamental Theorem...
3. Give (“a real life”) example of a market where you think the First Fundamental Theorem of Welfare Economics does not hold. Explain why it does not hold in this market
List and explain 4 reasons why the first welfare theorem might not hold in practice
List and explain 4 reasons why the first welfare theorem might not hold in practice
6. Short questions (10 points) a. Describe the first and second Welfare Theorem (2 points). b....
6. Short questions (10 points) a. Describe the first and second Welfare Theorem (2 points). b. Describe the difference between risk aversion, risk neutrality and risk prefering (2 points). c. Describe and explain the non-satiation assumption (2 points). d. Describe and explain the difference between adverse selection and moral hazard (2 points). e. Describe and explain the difference between income effect and substitution effect (2 points).
Question 6: In General Equilibrium, we assume all economic agents are price takers. A monopolist, however,...
Question 6: In General Equilibrium, we assume all economic agents are price takers. A monopolist, however, is not a price taker. If the economy has a monopoly seller of some good, rather than a price taking seller of some good, which of the following is true? (a) The first fundamental theorem of welfare economics still holds (b) The equilibrium price will be equal to the marginal cost of producing the good (c) The allocation that is reached in equilibrium will...
Bonus question for 10 extra points Three cards are drawn from a deck of cards in...
Bonus question for 10 extra points Three cards are drawn from a deck of cards in succession without replacement. Find the probability that the first card selected is an ace, the second card is a red jack and the third card is nine, ten, queen or king? (10 pts)
- (a) The failure time is 15 points) opns below PDF years (x) of a component...
- (a) The failure time is 15 points) opns below PDF years (x) of a component has the probabilsty density function ce o elsewer Find the probability that the component will fail in the first 2 years P( x S 2) (b) A system includes four components (A, B, and C), one of which will fail overa time period. The probabilities of the mutually exclusive component failures are P(C)-0.25 P(D) 0.10 P(A) 0.20 P(B) 0.15 The probability ofa system failure...
I need help with this economics question. The first question at the top and the for...
I need help with this economics question. The first question
at the top and the for critical thinking question is what i need
help with.
Two-Sided Markets, Network Effects, and Oligopoly Why are some platform firms that match people for dates experiencing positive market feedback from reducing the scope for potential matches? Example New Online-Dating Platform Firms Specialize in Limiting the Number of Matches Platform firms that provide matahmaking services in two-sided dating markets have developed a matches. People looking...
1 points (Extra Credit) Bonus question: One of the most common laboratory accidents is fainting Envision...
1 points (Extra Credit) Bonus question: One of the most common laboratory accidents is fainting Envision this scenario, which has happened at CSUB. A student standing beside you at the lab bench suddenly sways and then topples towards you. You catch the student in your arms to avoid being smashed by the fall Now what should you do? Place the answers in the correct order. Gently lower the student to the floor Inform the First Aid responder of all circumstances...
3. Consider the following piecewise function (a) Draw an accurate graph of f(). (b) As always, f(...
3. Consider the following piecewise function (a) Draw an accurate graph of f(). (b) As always, f(x), has an infinite number of antiderivatives. Consider an antiderivative F(r). Let us assume that F(r) is continuous (we don't usually have to specify this, but you will see in the bonus part of the question why we do in this case). Let us further assume that F(2) 1. Sketch an accurate graph of F(r). MATH 1203 Assignment #7-Integration Methods Due: Thurs., Apr. 4...
QUESTION 4 4 points (Extra Credit) Save Answer Bonus question: Kemmi Major is working on a...
QUESTION 4 4 points (Extra Credit) Save Answer Bonus question: Kemmi Major is working on a professor's research project. She uses a back-titration technique to determine if her reaction has formed the maximum amount of product. Back-titration works by reacting the species of interest (S) with an excess of the first chemical (A), resulting in complete reaction of the species of interest and some left-over first chemical. Then a second chemical (B) is titrated into the mixture to react with...
6. Short questions (10 points) a. Describe the first and second Welfare Theorem (2 points). b. Describe the difference between risk aversion, risk neutrality and risk prefering (2 points). c. Describe and explain the non-satiation assumption (2 points). d. Describe and explain the difference between adverse selection and moral hazard (2 points). e. Describe and explain the difference between income effect and substitution effect (2 points).
Bonus question for 10 extra points Three cards are drawn from a deck of cards in succession without replacement. Find the probability that the first card selected is an ace, the second card is a red jack and the third card is nine, ten, queen or king? (10 pts)
- (a) The failure time is 15 points) opns below PDF years (x) of a component has the probabilsty density function ce o elsewer Find the probability that the component will fail in the first 2 years P( x S 2) (b) A system includes four components (A, B, and C), one of which will fail overa time period. The probabilities of the mutually exclusive component failures are P(C)-0.25 P(D) 0.10 P(A) 0.20 P(B) 0.15 The probability ofa system failure...
I need help with this economics question. The first question
at the top and the for critical thinking question is what i need
help with.
Two-Sided Markets, Network Effects, and Oligopoly Why are some platform firms that match people for dates experiencing positive market feedback from reducing the scope for potential matches? Example New Online-Dating Platform Firms Specialize in Limiting the Number of Matches Platform firms that provide matahmaking services in two-sided dating markets have developed a matches. People looking...
1 points (Extra Credit) Bonus question: One of the most common laboratory accidents is fainting Envision this scenario, which has happened at CSUB. A student standing beside you at the lab bench suddenly sways and then topples towards you. You catch the student in your arms to avoid being smashed by the fall Now what should you do? Place the answers in the correct order. Gently lower the student to the floor Inform the First Aid responder of all circumstances...
3. Consider the following piecewise function (a) Draw an accurate graph of f(). (b) As always, f(x), has an infinite number of antiderivatives. Consider an antiderivative F(r). Let us assume that F(r) is continuous (we don't usually have to specify this, but you will see in the bonus part of the question why we do in this case). Let us further assume that F(2) 1. Sketch an accurate graph of F(r). MATH 1203 Assignment #7-Integration Methods Due: Thurs., Apr. 4...
QUESTION 4 4 points (Extra Credit) Save Answer Bonus question: Kemmi Major is working on a professor's research project. She uses a back-titration technique to determine if her reaction has formed the maximum amount of product. Back-titration works by reacting the species of interest (S) with an excess of the first chemical (A), resulting in complete reaction of the species of interest and some left-over first chemical. Then a second chemical (B) is titrated into the mixture to react with...
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